Enda Kenny has rejected demands from one of Ireland’s bailout partners to slash €2billion from the economy.

In its first post-bailout report the International Monetary Fund told the Coalition to stick to its original Budget plans and make the cuts in October.

But the Taoiseach insisted it would be politicians who make the decision based on a balance of targets and what the people need.

He said: “Other countries, other organisations, the independent Fiscal Council – all of these can have their views and they are very important views and we take them into account.

“But at the end of the day, politicians as a Cabinet have to make that decision based on what we think is in the best interests of reaching those targets and at the same time reaching out in recognition to people who have put up with a number of serious challenges in the past number of years.”

The bailout partners said no matter how well the country is doing it still wants €2billion in cuts and another €5.5billion between now and 2018.

The IMF joined Government think tanks the Fiscal Advisory Council and the Economic Social and Research Institute in demanding the Cabinet sticks to its original plan in October.

But Mr Kenny said people are tired of cuts and need some relief in their pockets.

He added his priority was to get the deficit down to 3% – and that it could be done with less than €2billion.

Mr Kenny said: “The stronger the economy is the greater flexibility the Government may have in making its decision. We won’t know and cannot know until the national accounts are examined at the end of summer.”

Independent TD Catherine Murphy said the warnings from the IMF would strike “terror into those who have already been ravaged by years of austerity”.

She said: “With the national debt figure standing at €203billion, it is the understatement of the century to say it is alarmingly high.

“Until it is addressed we will constantly be putting out budgetary fires.”